Aluminum Ingot Continues to Rise with Robust Trading in South China, Processing Fees of Aluminum Billet Decline with Mediocre Trading [SMM South China Spot Aluminum Daily Review]

SMM January 22:

For aluminum ingots in South China, the average SMM A00 aluminum (Foshan) price on January 22 was 23,770 yuan/mt, up 30 yuan/mt on the day, at a discount of 115 yuan/mt against the front-month contract, flat from the previous day. Approaching month-end, suppliers' willingness to realize cash increased, but with limited price and spot-futures price spread room, the sales pace was steady, with offers at 0 to +10 yuan/mt, and circulation increased slightly. Rising sentiment prompted downstream buyers and traders to shift from pushing for lower prices and waiting to active purchasing, effectively absorbing supply pressure, making transactions overall satisfactory; later, futures prices fluctuated, with offers at -80 to +70 yuan/mt, and only a few buyers inquired and concluded deals.

For aluminum billets in South China, on January 22, the processing fees for various specifications of SMM 6063 aluminum billets (Guangdong) pulled back, with the average price for Φ90/100 at 100 yuan/mt and for Φ120 and above at 50 yuan/mt, down 10 yuan/mt from the previous day. During the session, futures prices first fell then rose, downstream buyers only accepted low-priced supplies, merchants continued to lower offers, and overall transactions were overall satisfactory.